Panama Canal Slots Favor Regulars as Others Head to Auction

Panama Canal slots are allocated by ranking, so regular high-ranking users book Period 1 early while other ships face Period 2 or a Period 3 auction. Tom Beney, StoneX SVP of Ocean Freight, explains how the slot booking system works, why cargo type affects a ship's place in the queue and why bigger ships pay more. High-ranking regular users of the canal, such as COSCO, Cargill and NYK, can apply for a Period 1 slot well ahead of a ship's arrival, while lower-ranked users are typically looking at Period 2 or Period 3. Period 3 slots are sold by auction, and auction prices on the Neopanamax locks run very high compared with steadier bidding on the original Panamax locks. The original Panamax locks restrict a ship's beam, while the newer Neopanamax locks take longer, wider and deeper vessels, and the bigger the ship, the more the slot costs. Dry bulk tends to sit at the back of the queue as the least valuable cargo through the canal, while disruption around the Strait of Hormuz is sending more U.S. products to Asia on tankers and gas carriers. 0:00 Who Gets Through Panama First 0:51 Dry Bulk Sits Last in Line 1:11 Top Users Book Period 1 Early 1:54 Lower Ranks Head to Auction 2:08 Ship Size Picks the Lock 3:09 Neopanamax Bids Run Hot Discover Actionable Insights with StoneX Market Intelligence: https://shop.stonex.com/collections/all?utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_tom_beney&utm_content=share Like and subscribe for more financial market insights. #PanamaCanal #StoneX #TomBeney #Shipping --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social